Federal tax rates for 2008
- 15% on the first $37,885 of taxable income, +
- 22% on the next $37,884 of taxable income (on the portion of taxable income between $37,885 and $75,769), +
- 26% on the next $47,415 of taxable income (on the portion of taxable income between $75,769 and $123,184), +
- 29% of taxable income over $123,184.
The chart below reproduces the first calculation that has to be made on Page 2 of Schedule 1 of the tax package to calculate net federal tax. Page 1 is used to calculate federal non-refundable tax credits.
| Use this column if your taxable income is $37,885 or less | Use this column if your taxable income is more than $37,885, but not more than $75,769 | Use this column if your taxable income is more than $75,769, but not more than $123,184 | Use this column if your taxable income is more than $123,184 | ||
| Enter your taxable income from line 260 of your return | 1 | ||||
| Base amount | − 0 | − 37,885 | − 75,769 | − 123,184 | 2 |
| Line 1 minus line 2 (this amount cannot be negative) | = | = | = | = | 3 |
| Federal tax rate | × 15% | × 22% | × 26% | × 29% | 4 |
| Multiply the amount on line 3 by the tax rate on line 4 | = | = | = | = | 5 |
| Tax on the amount from line 2 | + 0 | + 5,683 | + 14,017 | + 26,345 | 6 |
| Add lines 5 and 6 | = | = | = | = | 7 |
Source: Canada Revenue Agency